Invest in hedge funds? GET REAL!by Gerri Willis
There has been a mystique around hedge funds -- many of us consider them attractive mainly because they have been out of reach. But new rules will make them more accessible, better known. And, that is a tragedy particularly now --now that hedge fund manager returns last year failed to come close to matching the market. Fees are out of control! An average of two percent and then the manager takes another 20 percent off the top. We measure fees for ETFs and mutual funds in basis points. One of my recent guests suggested that a reasonable price for a fund is 10 to 15 basis points.
Let the super wealthy continue to lose money with their hedge fund managers or, as one Twitter follower put it today, under the hashtag hedgefund slogans: Come for the high fees, stay for the underperformance
Invest in hedge funds? Get real!